Strike Minerals Announces $12 million Debenture
Strike Minerals Inc. STK
11/21/2012 8:00:00 AM
Strike Minerals Announces $12 million Debenture

Strike Minerals Inc. (TSX Venture: STK) ("Strike" or the "Company") is pleased to announce that it intends to raise up to $12,000,000 from a non-brokered private placement (the "Private Placement") of units (the "Units"). Each Unit will consist of $1,000 principal amount of secured non-convertible debentures ("Debentures") and 1,000 common share purchase warrants ("Warrants"). The Debentures will bear interest at a rate of 12% per annum, will be payable quarterly and will run for a term of three years. The Debentures will be secured against the assets of the Edwards Mine properties. Each Warrant will be exercisable into a common share for a one year period from the date of issuance at $0.10 per common share. The minimum participation in the placement is $25,000.

The Debentures and the underlying common shares issuable upon exercise of the Warrants will be subject to a four month hold period under applicable securities laws. The issuance of the Debentures and the Warrants is subject to the approval of the TSX Venture Exchange.

Finders will be entitled to a cash commission in the amount of 6% of the gross proceeds raised by each finder, and broker warrants ("Broker Warrants") equal to 6% of the aggregate number of Warrants issued to subscribers sourced by each finder. Each Broker Warrant will be exercisable into a common share for a one year period from the date of issuance at $0.10 per common share.

The proceeds of the Offering will be used to retire the Company's current debt facility with Waterton Global Value L.P. ("Waterton") and is expected to replace the debt facility. The completion of the Private Placement is subject to the Company coming to mutually agreeable terms with Waterton to buy out the credit facility and TSXV Approval.

Board Appointment

It is with pleasure that we announce that Kerry Smith, President of Strike Minerals has been appointed to the board. Kerry has many years of experience in the mining industry. He is a professional engineer, with more than 30 years’ experience in strategic leadership, financing and all operational aspects of mining projects. He is also president and CEO of HMZ Metals, with producing assets in China, and the Chairman of the Board of Southeast Asia Mining Corp.

About Strike

Strike Minerals is a TSX-V listed company that is engaged in the exploration and development of precious metal properties in Canada. Its primary property is the former producing Edwards Gold Mine property in the Goudreau – Lochalsh Gold Camp near Wawa, Ontario. Historic production in the camp between 1930 and 2001 is estimated at 500,000 ounces of gold. Between 1996 and 2001 underground development was completed through a decline to a depth of approximately 290 m resulting in 145,000 oz Au being mined from the Edwards Property.

Subsequent drilling on the property has delineated an additional five zones that have significant gold mineralization. Strike has commenced dewatering of the underground workings in order to provide access to enable underground drilling and bulk sampling of these new zones. The dewatering will also enable Strike to evaluate old stopes and high grade mineralization that was not mined when the mine was closed due to low gold prices in 2001.

Strike also has a large land position in the Hemlo West area near Schreiber, Ontario. The property has a number of historic producers that produced small tonnages of very high grade gold mineralization, averaging approximately 18-25 g/t gold, between 1935 and 1937 generally associated with shear zones in the region. These shear systems have seen very little modern exploration, and drill testing at or near a prominent syenite volcanic contact is considered highly prospective for the discovery of additional gold mineralization. Strike will conduct an initial program of surface geological and alteration mapping on the Property with a goal of increasing the understanding of the geologic and structural relationships on the Property in preparation for drill testing to assess the extent and value of the mineralization.